San Diego Mortgage Rates update: 12/31/2009

San Diego mortgage rates improved a bit yesterday but are slightly worse today after a better than expected Jobless Claims report.  Wait a minute? Did he say a better than expected report led to rates getting worse? That’s right! A side effect of an improving job market is the threat of inflation and investors hedge against that fear by selling off fixed income securities. This drop in fixed income securities prices causes a rise in San Diego mortgage rates. This month’s report showed the lowest number of first time  unemployment benefit claims since July of last year while economists were expecting a slight increase in that figure.

My wholesale lenders are issuing rate sheets that are 1/8 to 1/4 percent worse than yesterday. The par 30 year fixed rate remains in the 5.00% to 5.25% range for well qualified borrowers.  Well qualified assumes a FICO credit score of 740 or higher, loan to value at 80% or less and one point loan origination/discount.  The market will close early today and is closed all day tomorrow to allow the bond traders to recover from their New Year’s Eve hangovers. I wish you all a safe and happy new year and for tonight the key word is “Designated Driver”.  Check back next year for news affecting San Diego mortgage rates.